Built to Last by Jim Collins and Jerry I. Porras

Last updated: Jul 5, 2023

Summary of Built to Last by Jim Collins and Jerry I. Porras

Built to Last: Successful Habits of Visionary Companies is a book written by Jim Collins and Jerry I. Porras that explores the characteristics and practices of highly successful and enduring companies. The authors conducted a six-year research project to identify the common traits shared by these companies and provide insights into how they have been able to thrive over time.

The book begins by introducing the concept of a "visionary company," which is defined as an organization that has a strong sense of purpose and a set of core values that guide its actions. Visionary companies are contrasted with "comparison companies," which are similar in size and industry but have not achieved the same level of long-term success.

Collins and Porras identify a set of key principles that visionary companies follow. These principles include having a strong and enduring core ideology, setting audacious and long-term goals, embracing a "genius of the AND" mindset, fostering a cult-like culture, and continuously evolving and adapting to change.

The authors also introduce the concept of "BHAGs" (Big Hairy Audacious Goals), which are ambitious and inspiring goals that drive the actions of visionary companies. BHAGs serve as a unifying force and provide a sense of direction and purpose for the entire organization.

Throughout the book, Collins and Porras provide numerous examples and case studies of visionary companies, such as 3M, Johnson & Johnson, and Walt Disney. These examples illustrate how these companies have successfully implemented the principles and practices outlined in the book.

The authors also address the challenges and pitfalls that visionary companies may face, such as the danger of becoming complacent or losing sight of their core values. They emphasize the importance of continuous improvement and the need to constantly reinvent and adapt in order to stay ahead in a rapidly changing business environment.

In conclusion, Built to Last offers valuable insights and lessons for leaders and managers who aspire to build enduring and successful organizations. The book provides a comprehensive framework and practical guidance for creating a visionary company that can stand the test of time.

1. The importance of a strong company culture

Built to Last emphasizes the significance of a strong company culture in achieving long-term success. The book argues that companies with a clearly defined and deeply ingrained culture are more likely to thrive and endure over time. A strong culture acts as a guiding force, shaping the behavior and decision-making of employees, and creating a sense of unity and purpose within the organization. It helps attract and retain top talent, fosters innovation, and enables the company to adapt to changing market conditions.

To build a strong culture, the book suggests that leaders should articulate and reinforce a set of core values that align with the company's purpose and vision. These values should be consistently communicated and integrated into all aspects of the organization, from hiring and performance evaluations to strategic planning and daily operations. By prioritizing culture, companies can create a sustainable competitive advantage and increase their chances of long-term success.

2. The power of visionary leadership

Built to Last highlights the importance of visionary leadership in building enduring companies. The book argues that visionary leaders have a clear and compelling vision for the future, which inspires and motivates employees to work towards a common goal. These leaders are not just focused on short-term results, but rather have a long-term perspective and are willing to make bold and unconventional decisions to achieve their vision.

The book also emphasizes that visionary leaders are not necessarily charismatic or larger-than-life figures. They can be humble and reserved, but what sets them apart is their ability to articulate a compelling vision and align the organization around it. By providing a sense of direction and purpose, visionary leaders create a strong sense of identity and inspire employees to go above and beyond their individual roles. They also attract and retain like-minded individuals who share their passion and commitment to the company's vision.

3. The importance of setting BHAGs

Built to Last introduces the concept of Big Hairy Audacious Goals (BHAGs) as a powerful tool for driving long-term success. BHAGs are ambitious and inspiring goals that go beyond what seems achievable in the short term. They serve as a rallying point for the organization, energizing employees and pushing them to think creatively and take bold actions.

The book argues that setting BHAGs helps companies break free from the constraints of incremental thinking and encourages them to aim for breakthrough performance. BHAGs should be specific, measurable, and time-bound, providing a clear target for the organization to strive towards. By setting BHAGs, companies can foster a culture of innovation, challenge the status quo, and achieve extraordinary results that surpass their competitors.

4. The importance of preserving core values while embracing change

Built to Last emphasizes the need for companies to preserve their core values while embracing change and adapting to new circumstances. The book argues that core values are the foundation of a company's culture and should remain constant over time, providing a sense of stability and identity.

However, the book also acknowledges the importance of being adaptable and open to change. Companies that are too rigid and resistant to change are more likely to become obsolete in a rapidly evolving business environment. The key is to strike a balance between preserving core values and embracing necessary changes to stay relevant and competitive.

5. The importance of building a clock, not just telling time

Built to Last introduces the concept of "building a clock, not just telling time" as a metaphor for creating enduring companies. The book argues that successful companies focus on building systems and processes that can outlast any individual leader or employee.

Instead of relying solely on the skills and abilities of specific individuals, companies should invest in building a strong organizational infrastructure that can sustain long-term success. This includes developing effective management practices, nurturing a strong company culture, and implementing robust systems and processes that enable the organization to function smoothly and adapt to changing circumstances.

6. The importance of embracing the genius of "and"

Built to Last introduces the concept of embracing the genius of "and" as a key driver of success. The book argues that successful companies are able to embrace seemingly contradictory ideas and find ways to integrate them into their business strategies.

Instead of being limited by an "either/or" mindset, companies should strive to find creative solutions that combine the best of both worlds. This could involve balancing short-term profitability with long-term sustainability, or integrating innovation with operational excellence. By embracing the genius of "and," companies can avoid being trapped in binary choices and find new opportunities for growth and success.

7. The importance of building a cult-like following

Built to Last suggests that enduring companies often have a cult-like following among their customers and employees. These companies are able to create a strong emotional connection with their stakeholders, inspiring loyalty and advocacy.

The book argues that building a cult-like following requires companies to go beyond simply satisfying customer needs. It involves creating a unique and compelling brand identity, delivering exceptional customer experiences, and fostering a sense of community and belonging. By building a cult-like following, companies can generate strong customer loyalty, attract top talent, and differentiate themselves from competitors.

8. The importance of preserving autonomy and entrepreneurship

Built to Last highlights the importance of preserving autonomy and entrepreneurship within large organizations. The book argues that successful companies find ways to balance the benefits of scale and efficiency with the need for innovation and agility.

By empowering employees to take ownership of their work and encouraging entrepreneurial thinking, companies can tap into the creativity and resourcefulness of their workforce. This can lead to breakthrough innovations, faster decision-making, and a more adaptive and resilient organization. Preserving autonomy and entrepreneurship also helps attract and retain top talent, as individuals are more likely to be motivated and engaged when they have the freedom to make a meaningful impact.